Statement of cash flows and profit and loss are redundant

Hi there, @floridapigtails. 

I want to make sure this gets resolved for you. To ensure we're on the same page, can you add more details on what you mean by the cash flow statement listing net income after deducting the entire credit card balance?

For the time being, let me provide information about the difference between profit and cash flow. Revenue less expenses equals profit. You may also call it "net income." The inflows and outflows of cash for a certain business are referred to as "cash flow." When there is positive cash flow, more money is coming in than going out at any particular time. When there is a negative cash flow, the opposite is true.

For more information about this, see this article: Understanding the critical differences between profit and cash flow.

We are looking forward to hearing from you. Have a great day!

Thanks for the chance to clairfy!  I understand the difference between profit & loss and cash flow 100%.  Here's what I'm having trouble wrapping my head around.  Let's say my total incoming revenue for a month was $150K, I had $125K in expenses including labor and COGS and some auxilarry expenses (in the 500's) that are captured on my profit & loss statement and reduce my earnings on my P&L but are paid for with my credit card.  The net income that ultimately carries over the $25,000 (income or profit) at the top of the cash flow statement as incoming money which makes 100% sense.  What is throwing me is that in the adjustments to reconcile net income to net cash, they are deducting the ENTIRE credit card bill which already includes a ton of expenses that were charged and recorded and ultimately reduced by net income on the profit & loss statement.  For an even more finite detail - I spend $100 on a charity donation on my credit card in February and it is logged on my profit and loss as an expense and therefore reduced my incoming revenue by $100 on the P&L which as stated above my net income after expenses is recorded at the top of the cash flow statement.  That exact same $100 is then also deducted from my net income as a credit card liability.  Isn't this duplicating my expenses - that money was already accounted for?  This is happening for almost every single transaction on my credit card - approximately $20k/month.  It is accounted for as individual expenses on my P&L thereby reducing my net income but then it comes out as a lump sum on my cash flow.  Can't wrap my head around why this is happening??

I'm delighted to have you back in the Community thread. Thank you for giving us more detailed information about your issue. Let me help you clear things out.

I understand that it appears your credit charges seem to be posted twice. However, they're actually not. The Profit and Loss just show the reported expenses from your credit card charges. On the other hand, the Statement of Cashflow only shows the in and out flow of your credit card transactions.

I recommend seeking assistance from an accounting professional about this matter. They are more capable of explaining the accounting side of your transactions.

As you download transactions from your bank, you must categorize them so that they get into the correct accounts. If you wish to speed up the review process, you may utilize bank rules to automatically categorize transactions from your bank. Please refer to this article: Set up bank rules to categorize online banking transactions in QuickBooks Online.

The Community is here 24/7 to help you clear things out if you have further concerns with your transactions in QuickBooks Online. We're looking forward to assisting you. Have a great day!